Canada's Economy Surges 3.4% on Energy Boom

The Canadian economy is expected to post a stronger-than-expected rebound in the second quarter, driven by a surge in energy production.

A preliminary estimate from Statistics Canada suggests real gross domestic product expanded at an annualized rate of 3.4% between April and June.

This growth is largely attributed to increased crude oil production in May, which reached its highest volume since at least 2016, according to the agency.

The energy sector's boom is a result of strong demand due to reduced supply from the Middle East following the US-Iran conflict.

Bank of Canada officials had previously projected a growth rate of 2.5% in the second quarter, but this estimate was based on expenditure measures.